Broadcasters received moral support this morning from cable in the looming battle against the new Auto Hop feature on Dish Network‘s Hopper DVRs, which enables the machines to automatically recognize and skip over ads on recorded shows. “In the end a technology like that could create real carnage for the industry,” Discovery Communications CEO David Zaslav said in a panel opening this week’s annual Cable Show. And he put Dish Network’s Charlie Ergen on notice that his programming costs could soar if he continues to sell the ad-zapper. “He needs our content,” Zaslav says. “If there isn’t going to be advertising, then there needs to be a lot higher subscriber fees.” He says the pay TV industry needs to be “disciplined” to protect the current system built around ads and subscriber payments. Time Warner Cable CEO Glenn Britt said that in the long run it could hurt consumers. “Either subscription prices are going to go up or there’s going to be less content made,” he said. “Destroying the revenue isn’t going to have the effect people think.” But AOL chief Tim Armstrong said that Dish’s initiative puts more pressure on advertisers and media companies to develop commercials that people will want to watch. “The reality is you have a superengaged consumer,” he says. “How do you make more engaging advertising tied to how people are using the media?” He urged pay TV providers to recognize how quickly consumers are starting to watch video on smartphones and tablets and “think from a mobile-first design principle.”


All of these broadcasters should pull their networks from Dish. Advertising pays for shows. If Dish wants to produce content themselves and pay for everything associated with it for no advertising then they should do that. If all of the big networks just left Dish what would they have. A lot of public access television and that would be really compelling content wouldn’t it.
Well Brant, how about people like myself who have stopped watching TV and most of Cable that has network programming with commercials. Why? Because more than 50% of a program is ads, and I for one am tired of sitting thru more and more commercials I dont like nor have the inclination to buy the products listed. You say that it is needed to pay for the program, but when there are so many of them that the program is irrelevent what is the difference. Its much easier to wait for it to hit the internet and only have to deal with a couple of ads instead of commercials every 5 minutes.
Right, because those of us with DVRs aren’t already just skipping the ads.
This is just willful ignorance on the part of the networks.
But all it does is allow for users to skip over ads during recorded programs. Doesn’t everyone do that now any way with their DVRs?
Manual Ad-skipping is a feature that has been around since the inception of the DVR, predating TiVo and Dish’s systems. Automated ad-skipping has too, we had VHS machines that auto-fast-forwarded past commercials two decades ago. Nothing has changed. Viewers will watch and give their full attention to ads they find compelling, and very little attantion to ads they are forced to watch but are poorly targeted or are bland. Viewers choosing what they want to watch is not a new phenomenon.
The current ad model is broken. Support dish 100% . Financial “penalties” are childish and backward-thinking.
I’d rather pay a higher monthly fee and not have any commercials, if that were an option. I’m all about people getting paid for their work, but commercials today are insulting, pedantic, moronic little 30 second assaults on our collective intelligence. Then again, I’m also one of those rebels who long for a la carte pricing in cable subscriptions, so I could dump channels I couldn’t care less about, like HGTV, lifetime, Bravo, A&E etc.
“Not quite right’…you’re spot on!
“If there isn’t going to be advertising, then there needs to be a lot higher subscriber fees.”
And for their to be higher subscription fees, you will actually have to provide decent content. Which, by the way, is the new order.
Welcome to actually having to understand what’s good and what’s bad. It’s not going to go well for these guys.
Memo to all you dinosaur execs in the industry: we do not watch your stinking ads. Get a grip.
How ironic that I had this feature for free years ago, via my old VCR that had an ad-skip feature. And I’d be using it today except the government frakked things up with the digital transition.
“And he put Dish Network’s Charlie Ergen on notice that his programming costs could soar if he continues to sell the ad-zapper.”
Maybe that’s not a threat but rather a market opportunity? Are there customers who would pay for a premium cable service that easily nukes ALL ads in a very simple and effective way? DishTV could spin off an ultra-premium brand for that audience and turn a detriment into an advantage.
As for me, eh, I kind of like ff’ing the ads rather than skipping them entirely because every so often there’s a good one that catches my eye.
At some point the networks are going to have to consider that piracy isn’t going away. Dish seems to be looking at ways to give the customer some of the features that lead people to watch their shows online. Which is worse, for a viewer to skip a few commercials while maintaining their subscription service or to cancel service all together to watch their shows on pirated sites? Both as a viewer and as an employee at Dish I feel that is an opportunity for the networks to work with Dish to keep viewers before they resort to viewing online only. One of the reasons I personally have streamed shows online is that I can catch up on missed episodes much more quickly without the commercials but thanks to Dish my DVR offers the same convenience.
I’m looking forward to the day when America adopts the UK (and others’) method, where there are no commercials at all, and everything is high-quality programming, provided by the Government, via taxes or a user fee.
Now that I’m done being somewhat sarcastic, does anybody ever give a thought to what it costs to produce a decent TV show?
The Cable and satellite providers don’t do it. The “rent you their truck”, to transport other people’s product. They know they can’t afford to produce quality programming, without charging the same kind of money that they call “excessive” when the network affiliates ask for it. Programming costs money. Advertising pays for much of it. Retrans fees help to keep the advertising costs (and frequency) down, while making up for the fact that Cable and Sat are using the programming to attract subscribers.
Making it not only “possible”, but “likely” that customers won’t see any ads, just means that programmers will turn to product-placement, or cheaper programming.
Even when I am forced to watch real-time broadcast television, I don’t watch the ads. I flip through books, channel surf, or find one of many other things to better occupy my time. I think the networks, the ad companies, and all others involved are deluding themselves.
Since watching it or not watching commercials doesn’t actually impact the broadcast and sales of those commercial spots, what they’re really saying is “We are going to ram advertising down your throat or you are going to pay us more.” Sadly, most consumers don’t live a life without television (specifically cable) and they don’t understand how it works so they’re likely to be afraid or railroaded into paying more. It’s really the same story every time a new technology comes out that gives the consumer control over how they consume a broadcasted service: it will destroy the industry. Well “the industry” has survived records, cassette tapes, CDs, online music and it will survive this.
My old Replay TV DVR had auto-ad skipping. SONIC Blue went bankrupt fighting a copyright infringement suit over the ReplayTV’s ability to skip commercials. Its assets where purchased by DirecTV (who I despise BTW).
It will be interesting to see if Dish gets sued also. I miss my replay box. I never watched ads. Currently there are no subscription realtime pay TV services (Dish, cable DirecTV) in our household. We do sub to Netflix streaming and get content via Jailbroken Apple TV boxes and over the air digital TV.
Question: if advertising pays for the programming why are consumers paying to watch it?
It is true that we are held hostage to the companies that continuously show ads and which interrupt our programs.Sometimes it gets so boring that we get angry.But these broadcasters are not likely to hear our causes.
David Zaslav’s comment is on target. There is an economic system that supports the production of television programming. Some of the money comes from advertising, some of it comes from subscriber fees paid by cable and satellite companies (directly or indirectly from their customers) and some of it comes from DVDs, international rights, etc. If the advertisers are going to be getting less value, you can be sure that the broadcast and cable networks will try to see if they can get more from sub fees to maintain their profitability. Higher subscriber fees are not good news if you are a subscriber. The DVR is great because it let’s us skip past ads that are irrelevant. That doesn’t really harm the value of the advertising, because we aren’t going to buy the products advertised in irrelevant ads. Ads that are relevant (or creative) we’ll watch (and maybe even more than once). What’s different about Auto Hop is the advertiser doesn’t get the opportunity to pull a viewer in with a relevant or compelling ad because the viewer never sees even the sped-up version of it; it is blocked entirely. Furthermore, this is not an ad-by-ad decision by the viewer (like fast forwarding or changing the channel or leaving the room); it is a one-time setup option. Auto Hop does seem a potential threat to the economic system. Worse, it logically leads to un-”Hoppable” ads incorporated into the shows themselves.
In all the years we’ve fast-forwarded through commercials, I can’t recall once stopping to view one that caught our attention. Ad-by-ad decision?? That’s a new one!
Broadcasters relying on ad sales are flim-flam men in the first place. They make their advertisers believe that people actually sit through and pay attention to their drivel when in fact they get up, pee and fetch more snacks and beer from the kitchen while the TV talks to the couch. Of course they have to speak out against a DVR that makes this slight-of-hand disappear completely.
It is a consumer’s right to edit, whatever comes into their homes. This is nothing but creeping fascism trying to establish a firm foothold into the minds of younger generations as normal corporate conduct, which leads to public acceptance with very little resistance.